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August 26, 2025cryptonews logocryptonews

Ethereum Outpaces Bitcoin: Why Analysts Expect ETH to Break $5K Soon

Ethereum’s recent rally above $4,300 has reignited market debate over whether the world’s second-largest cryptocurrency is about to enter a new growth phase — leading the broader digital asset market ￰3￱ Bitcoin remains strong, analysts suggest Ethereum’s fundamentals, combined with macroeconomic tailwinds, could give it an edge in the weeks ￰4￱ Holds Steady, but Ethereum Gains Momentum According to Gracy Chen, CEO of global crypto exchange Bitget , Bitcoin is expected to trade in the $110,000–$120,000 range over the next one to two ￰5￱ inflows into spot Bitcoin ETFs remain supportive of the flagship crypto, providing a solid base of demand. However, Chen sees Ethereum as better positioned to ￰6￱ expects ETH to trade in the $4,600–$5,200 range, as momentum builds across its ecosystem.

Ethereum’s move past $4,300 is viewed as a key breakout level, confirming strong demand for the blockchain’s utility and showing the potential start of an altcoin ￰7￱ catalyst has been Federal Reserve Chair Jerome Powell’s unexpectedly dovish policy stance, which boosted risk appetite across equities, bonds, and digital ￰8￱ August 22, Chair Powell spoke on the Federal Reserve’s monetary policy framework ￰9￱ materials: ￰0￱ ￰1￱ ￰2￱ ￰10￱ — Federal Reserve (@federalreserve) August 22, 2025 The softer outlook for interest rates has encouraged capital rotation within crypto markets, with on-chain data showing whales selling Bitcoin to increase Ethereum ￰11￱ Rotation and Institutional Utility Ethereum’s recent surge has been fueled not only by macro easing but also by growing utility across decentralized finance (DeFi) and real-world asset (RWA) tokenization.

On-chain data shows over $2 billion of BTC converted into ETH by large holders in recent days, highlighting confidence in Ethereum’s near-term ￰12￱ rotation is also reinforced by Ethereum’s staking yield ￰13￱ Bitcoin, which functions primarily as a store of value, ETH enables holders to earn passive income through ￰14￱ dual function — capital appreciation plus yield — makes ETH attractive to both long-time Bitcoin holders and institutional ￰15￱ Rusher: Sub-$5,000 ETH Is Nearing the End Kevin Rusher, founder of RAAC, a real-world asset borrowing and lending ecosystem, argues that Ethereum’s days below $5,000 may soon be over. “While the crypto market is experiencing a short-term sell-off after ETH hit an all-time high over the weekend, the market returns for ETH have been eye-popping over the medium term,” Rusher ￰16￱ points out that in the past 30 days, ETH is up 17% compared with Bitcoin’s 7% decline, showing Ethereum’s relative ￰17￱ dominance has also slipped to 58.6%, further highlighting Ethereum’s growing role in the digital asset ￰18￱ to Rusher, Ethereum’s outperformance has been driven by digital asset treasuries (DATs), which are increasingly allocating to ETH as the blockchain of choice for DeFi and RWA ￰19￱ adds the European Union is considering Ethereum for its digital Euro project, a development that could anchor ETH’s position as the institutional blockchain of the ￰20￱ Tailwinds Could Accelerate Growth Rusher also highlights the potential impact of a Federal Reserve interest rate cut, which would open the door for retail capital to re-enter risk assets at ￰21￱ with staking yields and institutional adoption, such conditions could create what he calls “fiery demand” for ETH.

“The market is waking up to the utility of Ethereum as a blockchain and the huge opportunity this presents,” Rusher added. “Sub-$5,000 ETH could soon be history.” Outlook While Bitcoin remains the anchor of the digital asset market and continues to attract institutional flows through spot ETFs, Ethereum’s combination of growing utility, staking yield, and institutional integration gives it a unique ￰22￱ whales rotating capital and policymakers recognizing Ethereum’s infrastructure role, ETH could be on the verge of cementing its place as the leading driver of the next crypto market rally.

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